Angel Estrada, 22, a formerly licensed insurance producer and owner of Angel Estrada Agency, swindled a national insurer out of more than $140,000 in commissions by writing bogus commercial insurance policies to earn large commissions, the California Department of Insurance alleges.
According to CDI investigators, Estrada submitted 74 applications between 2016 and 2017 for commercial insurance policies and was rewarded for the new business with large commissions.
Estrada then reportedly used a portion of his commission money to fund initial premium payments on new bogus policy applications to secure additional commissions. Investigators allege Estrada continued this practice until the insurer audited his business and revealed the alleged scam.
Internal auditing and underwriting by the national carrier revealed only one of the 74 policies Estrada submitted had an actual premium payment, according to investigators.
Based on the evidence, department investigators secured an arrest warrant and Estrada surrendered in Los Angeles Superior Court on Friday and was then released on his own recognizance.
The case is being prosecuted by the Los Angeles County District Attorney’s Office.
The department suspended Estrada’s license on April 11.
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